A Tenant Has a Gross Lease with an ''Expense Stop''of $\rightarrow$

Multiple Choice

A tenant has a gross lease with an ''expense stop''of $2.75/SF. If the building has 200,000 square feet of leasable space, reimbursable operating expenses of $750,000, and the tenant rents 25,000 SF, then how much does the tenant owe the landlord in expense reimbursements (the total $ amount) ?

A) $3.75/SF.
B) $25,000. : $750,000 / 200,000SF $\rightarrow$ Total OE/SF = $3.50. Less $2.50 stop $\rightarrow$ Tenant owes $1.00/SF * 25k SF.
C) $68,750.
D) $93,750.
E) Can't answer because it depends on the CPI adjustment in the lease.